Annual Report of Raiffeisen-Landesbank Tirol AG

rlb.tirol.at

Annual Report of Raiffeisen-Landesbank Tirol AG

Annual Report of Raiffeisen-Landesbank Tirol AG


Contents

Annual Report 2009 | 03 |

Foreword by the Board of Managing Directors 04

Overview by the Board of Managing Directors & Supervisory Board 06

Foreword by the Chairman of the Supervisory Board 07

Raiffeisen-Landesbank Tirol AG 08

Employees 10

Raiffeisen in Tyrol 12

Raiffeisen in Austria 14

Management Report 16

Annual fi nancial statements 28

Bank branches 46


| 04 |

Foreword by the Board of Managing Directors

Dr Hans Unterdorfer

Member of the Board

Dr Hannes Schmid

Chairman of the Board

Reinhard Mayr

Member of the Board

Gobert Sternbach

Member of the Board

Dear Ladies and Gentlemen,

As early as the start of 2009 it became clear that, in parallel to the fi nancial crisis triggered

by the insolvency of the US investment bank Lehman Brothers, there would also

be a critical phase in the real economy. Many experts even forecast a global depression.

This was nevertheless cushioned by enormous efforts on the part of governments, with

numerous bank rescue plans and economic stimulus packages as well as an expansive

monetary policy by central banks. Even though the situation had calmed down somewhat

by mid-year as a result of these interventions, 2009 will go down in history as one of

the worst years for business since the end of the Second World War.

Raiffeisen-Landesbank Tirol AG can also look back on an extraordinary year 2009. The

economic crisis, which was very apparent in Austria with a GDP decline of

3.6 per cent, resulted in considerable additional expense for credit risk management.

Despite the diffi cult economic climate, a substantial improvement was made to our

earnings from ordinary business activities and, in a comparison with our competitors in

the sector, we were able to generate a very good net result. This is primarily due to our

business model with its consistent focus on the customers in our region. Our committed

and capable employees are also a crucial competitive advantage. We owe our special

thanks to them.

We are very pleased that we have again in 2009 succeeded in extending our leading

market position in Tyrol, together with the 81 Tyrol Raiffeisen banks. As an alliance we

are by far the largest and most powerful banking group in the federal state. Backed up

by more than 262 bank branches throughout the region, we provide the local population

and business with high-quality fi nancial services. The Raiffeisen Banking Group Tyrol

also provides more than 2,700 jobs, making it one of the largest and most attractive

employers.

We thank our customers, partners, owners and employees for the trust placed in us and

we look forward to successful cooperation in 2010.

Dr Hannes Schmid

Chairman of the Board

Reinhard Mayr

Member of the Board

Foreword by the Board of Managing Directors | 05 |

Foreword by the Board of Managing Directors

Gobert Sternbach

Member of the Board

Dr Hans Unterdorfer

Member of the Board


| 06 |

Overview by the Board of Managing Directors & Supervisory

Board

Overview by the Board of Managing Directors

and Supervisory Board

Board of Managing Directors of Raiffeisen-Landesbank

Tirol AG

Dr Hannes Schmid

Chairman of the Board

Gobert Sternbach

Member of the Board

Supervisory Board of Raiffeisen-Landesbank Tirol AG

Prominent Businessman Peter Greiderer*

Chairman

Director of Raiffeisenbank Wörgl Kufstein

Johannes Gomig, MBA

Deputy-Chairman**

Director of Raiffeisenbank Reutte

Berthold Blassnig

Director of Raiffeisenbank Defereggental

Engineer, Alfred Greil*

Farmer, Dölsach

Herbert Jehle*

Director of Raiffeisenbank Paznaun

Andreas Mantl

Director of Raiffeisenbank Wipptal

Dr Michael Misslinger**

Director of Raiffeisenbank Wörgl Kufstein

Gallus Reinstadler

Director of Raiffeisenbank Pitztal

Delegates from the Staff Council

Reinhard Mayr

Member of the Board

Dr Hans Unterdorfer

Member of the Board

Josef Graber

Chairman **

Director of Raiffeisen Regional Bank Hall in Tyrol

Peter-Roman Bachler

Deputy-Chairman**

Director of Raiffeisenbank Kitzbühel

Josef Chodakowsky**

Director of Raiffeisenbank St. Anton am Arlberg

Dr Anna Hosp**

Employee, D. Swarovski & Co.

Martin Lorenz**

Managing Director of Bergbahnen Silvretta Galtür

Meinhard Mayr

Director of Raiffeisen District Bank Schwaz

Dr Manfred Opperer*

Lawyer

Johann Thaler**

Mayor of Reith i. Alpbachtal

Doris Clementi, Innsbruck Heinz Hofer, Lienz

Roman Sautner, Jenbach Rudolf Staffl er, Tristach

Erika Zingerle, Innsbruck Dr Markus Zorn, Rum

State Commissioners

Court Counsellor Dr Michael Manhard

Federal Ministry of Finance, Vienna

AD Andreas Umlauf

Federal Ministry of Finance, Vienna

* until 28.04.2009

** since 28.04.2009

Foreword by the Chairman

of the Supervisory Board

Dear Ladies and Gentlemen,

In 2009 the Austrian economy was unable to escape the downward economic trend

throughout the world as general conditions became very challenging. This makes it all

the more remarkable that Raiffeisen-Landesbank Tirol AG, the fl agship of the Raiffeisen

Banking Group Tyrol, can report a fi ne result for 2009 in this environment.

It was possible to continue the success of recent years through the bank's consistent

focus on customer business in the region, our prudent risk policy and the close attention

given to costs. The cornerstones of this performance were professional management

and the outstanding commitment of all the bank's employees.

A particularly noteworthy aspect of 2009 was the excellent cooperation within the Raiffeisen

Banking Group Tyrol. The economic challenges were tackled very well, synergies

were used and the market position was extended, all as a joint effort. In doing so,

Raiffeisen-Landesbank Tirol AG has performed its role as a leading institution very well.

Collaboration between the Board of Managing Directors and the Supervisory Board was

also highly constructive in 2009 and benefi ted Raiffeisen-Landesbank Tirol AG as well

as the entire Raiffeisen Banking Group Tyrol. I would like offer my warmest thanks to

the whole Board of Managing Directors, all management personnel, operating staff and

employees for this productive cooperation and high degree of dedication.

Dir. Josef Graber

Chairman of the Supervisory Board

Foreword by the Chairman of the Supervisory Board | 07 |


| 08 |

Raiffeisen-Landesbank Tirol AG

Raiffeisen-Landesbank Tirol AG Major stakes held by RLB Tirol AG

A modern fi nancial services provider

with tradition

Raiffeisen stands for competence and reliability in all fi nancial

matters. Based on the ideas of Friedrich Wilhelm Raiffeisen, the

tradition of Raiffeisen fi nancial organisations stretches back more

than 100 years. He laid the foundation for a unique success story

and a worldwide business model based on his principles.

Raiffeisen-Landesbank Tirol AG is the top-level institution of the

Raiffeisen Banking Group Tyrol. It is more than 99 per cent owned

by the Tyrol Raiffeisen banks and, as an alliance, it represents by

far the largest and most powerful banking group in the federal

state of Tyrol.

Raiffeisen-Landesbank Tirol AG is a modern universal bank, offering

its customers tailored, innovative solutions and competent

advice. A large number of special-purpose Raiffeisen companies

make a key contribution with their expert knowledge and innovative

products.

RLB Tirol AG offers Tyrol Raiffeisen banks innovative product

solutions and professional services. The benchmark for action is

effective partnership, mutual appreciation, a sense of responsibility

and professionalism.

Profi table partnership

RLB Tirol AG has a sustainable partnership with its customers.

Discretion, professionalism and short decision-making paths are

the key elements in providing optimum support to customers for

realisation of their projects and objectives. Special emphasis is

placed on personal advice, focussing specifi cally on particular

customer needs and product quality at the highest level.

Raiffeisen-Landesbank Tirol AG stands for proximity. Although

close personal attention by the advisors is the principal feature,

emphasis is also placed on a local presence. For this reason the

RLB branch network in the Tyrol areas of Innsbruck, Innsbruck

Land as well as Imst and Lienz is being constantly optimised. In

2009 the branches in Imst and Höttinger Au were renovated or

newly built.

A fundamental principle of RLB Tirol AG is to provide the best

possible service to customers whatever their age and no matter

how challenging the fi nancial position. Specialists with innovative

solutions are available to deal specifi cally with particular requirements

and to develop custom-made products. This enables

personal wishes to be fulfi lled or business projects to be realised.

Above and beyond conventional banking services, RLB Tirol AG

offers something out of the ordinary, which could be special advi-

sory services, interesting series of lectures or use of the extensive

Raiffeisen network. The resulting long-term added value strengthens

the relationship of trust and is the basis for a sustainable and

profi table partnership between RLB Tirol AG and its customers.

Highly trained and committed employees

As a service company, our success is defi ned through customer

satisfaction to a large extent. The key to success is highly

trained and committed staff. This enables us to respond fl exibly

to the needs of customers, to new challenges and new market

opportunities. It also ensures that Raiffeisen-Landesbank Tirol

AG maintains its competitive edge.

One of our most important corporate goals is to provide appropriate

further education, because the professional, methodical and

personal development of employees is the basis for outstanding

job performance. Other major aspects include highlighting

individual development options through career planning as well

as active health management.

Customers benefi t from the high quality of advice as evidenced

by the top level of professional and social skills. This forms the

basis for a life-long partnership with customers.

Responsibility for Tyrol as a place to live

Raiffeisen-Landesbank Tirol AG is also strongly committed to Tyrol

as a place to live. The causes we support include in particular

social facilities such as the Red Cross, the Tyrol hospice movement,

the Caritas and Seraphisches Liebeswerk charitable organisations

as well as sponsorship for sport, education and science.

Raiffeisen-Landesbank Tirol AG also makes a major contribution

to art and culture. As far back as the early 1960s, we were one of

the fi rst banking institutions in Austria to start building up an art

collection. In 1997 the RLB Kunstbrücke (art bridge) at the Adamgasse

branch provided space for exhibitions. Three exhibitions

are held here each year, by young Tyrol artists through to highly

regarded international artists. In music, too, the bank makes its

mark by supporting the Alte Musik (Old Music) festival, the Erl

Festival and the New Orleans Festival.

Tyrol is well known for its wide range of leisure activities and its

unique natural heritage, which are part of Tyrol's identity. In order

to keep it this way, Raiffeisen-Landesbank Tirol AG sponsors a

number of initiatives as a bank with deep roots in the region.

Austrian

National Bank

RACON West Software GmbH

LOGIS IT Service GmbH

Unser Lagerhaus

Warenbeteiligungs-GmbH

Raiffeisen & Steinmayr

Tirol Consult

Raiffeisen Zentralbank

Österreich AG

Raiffeisen-Landesbank Tirol AG | 09 |

AlpenBank AG

Raiffeisen Bau Tirol PayLife Bank

Raiffeisen Bausparkasse

Raiffeisen-Leasing GmbH

Raiffeisen

Capital Management


| 10 | Employees

Thanks are due to our employees

Manuela ABFALTER, Manfred ACHRAINER, Veronika AIGNER, Iris AIGNER, Pauline AIGNER, Walter ALTSTÄTTER, Karin Brigitte

AMMER, Hubert AMON, Christian ANDREATTA, Johann ANGELMAYER, Reinhard ANGERMANN, Sabine ARL, Anita ARLT, Harald

ASCHABER, Patricia ASSMAIR, Eva ASTL, Agathe ASTNER, Markus AUER, Cornelia AUER, Roland AUER, Sibylle AUER, Bernhard

AUGSCHÖLL, Marina BABIC, Petra BACHLECHNER, Hildegard BACHMAIR, Doris BADSTUBER, Nina BADSTUBER, Hubert BARBIST,

Monika BARISITZ, Heinz BAUMANN, Gerald BEER, Petra BENEDIKTER, Maximilian BERGHAMMER, Elisabeth BERNHARDT, Verena

BERNLOCHNER, Christian BEVELANDER, Claudia BLIEM, Gerhard BLOEB, Stefan BODNER, Reinhard BÖCK, Ingo BÖHLER, Susann

BÖKDRUKKER, Josef BRANDAUER, Eva Maria BRASCHLER, Christian BRAUNEGGER, Barbara BRIDA, Richard BRUGGER, Birgit

BRUNNER, Karl BRUNNER, Sabine BUDISCHOWSKY-ANICH, Günther CHRONST, Doris CLEMENTI, Gerhard CRAMER, Christoph

CZICHNA, Daniela DAMIANSCHITZ, Martin DANLER, Monika DANNINGER, Peter DARNHOFER, Bianca DAUBEK, Andreas DEGEN-

HART, Daniela DEISER, Agnes DEISER, Silvia DELLASEGA, Andreas DIERIGL, Nadine DÖTLINGER, Arno DRAXL, Verena DRESEN,

Elisabeth DÜNSER, Katrin DÜRNBERGER, Markus DUFTNER, Peter DULLNIG, Markus DULLNIG, Claudia DULLNIG, Sandra EBERL,

Peter ECKERT, Andreas EGGER, Oliver EGGER, Nicole EGGER, Herbert EICHHORN, Irene EISENBEUTL, Christina ELLER, Thomas

ELZENBAUMER, Barbara ENGENSTEINER, Christian ENGL, Elisabeth ENGL, Angela ERHARTER, Ilse ERLACHER, Hansjörg ERLER,

Martin EXENBERGER, Genovefa FALKNER, Sabine FALSCHLUNGER, Daniel FASCHING, Petra FEICHTNER, Meinhard FIDLER,

Johann FINK, Helga FINNER, Christian FOIDL, Roland FRIESS, Ludwig FRÖCH, Elke FÜRHOLZER, Manuela FUNK, Alexander

GÄNSLUCKNER, Angelika GALLY, Jörg GAMROTH, Wilfried GANDER, Alfons GANEIDER, Manfred GAPP, Michael GASSER, Birgit

GASSER, Roland GASSER BERGER, Walter GAUGG, Johannes GEILER, Manuela GEILER, Christine GEISLER, Petra GEISSLER,

Eleonore GERBER-EICHHORN, Claudia GINER, Hermann GIRSTMAIR, Marina GLATZL, Domenik GLÖCKNER, Stefan GOGL, Peter

GOLLER, Martin GOREIS, Helga GRABNER, Dagmar GRANZER, Arthur GREIDERER, Daniela GREIDERER, Markus GRIMM, Erich

GRISSMANN, Klaus Michael GROSSGUT, Franz GRUBER, Renate GRUBER, Andrea GRUBER, Verena GRUBER, Christina GRUBER,

Manuela GRUBER, Evi GRUBER, Angela GRÜNBACHER, Christian GSCHLIESSER, Gerhard GSTREIN, Bernhard GSTREIN, Siegmund

GUTTERNIG, Bernhard HAAS, Christa HABERKORN, Olivia-Lorea HABERL, Michael HAGER, Annemarie HAIDER, Michaela HAIDLER,

Elisabeth HAIRER, Gabriele HANDL, Johannes HAPP, Heinrich HASELWANTER, Susanne HAUN, Florian HAUSER, Elisabeth HAUSER,

Gabriele HAUSER, Karin HAUSER, Julia HEEL, Martin HEIDEGGER, Andreas HEIM, Alexander HEINDL, Alexander HEISS, Karoline

HEISS, Martina HEISS, Albert HELL, Helene HELLRIGL, Eric HENSEN, Heidi HINTNER, Christian HIRNER, Sabrina HIRSCHBERGER,

Gerhard HLAVACEK, Erwin HÖGER, Klaus HÖRTNAGL, Christian HÖRTNAGL, Victoria HÖRTNAGL, Nicole HÖRTNAGL, Heinz-Johann

HOFER, Paula HOFER, Christine HOFER, Martina HOFER, Barbara HOFLER, Gregor HOHENAUER, Sylvia HOLAUS, Simon HOLZHAM-

MER, Hans HOLZKNECHT, Maria HOPPICHLER, Dietmar HOSP, Astrid HOY, Petra HUBER, Julia HUBER, Albert HUEBER, Helmut

HUPFAUF, Gerhard HUPFAUF, Lukas HUTER, Elisabeth IGHODARO, Eva JÄKEL, Joachim JAMNIG, Sascha JANESCH, Ingrid JANICKI,

Christine JANTSCHER, Maria JEITLER, Monika JENEWEIN, Johann JUNGMANN, Carolin KAIL, Sylvia KAINZ, Daniel KALDINAZZI,

Johannes KAMPFER, Claudia KAPELLER, Markus KAPFERER, Barbara KAPPACHER, Sabrina KASERER, Simone KASTL, Margarita

KATSCHNIG, Helmut KELMER, Werner KERBER, Josef KEUSCHNIGG, Regina KIRCHMAIR, Angelika KIRCHMAIR, Heidi KIRSCHNER,

Johannes KLAUNZER, Andreas KLAUNZER, Ludwig Josef KLEINDL, Roger KLIMEK, Klaus KLINGENSCHMID, Karin KLINGENSCHMID,

Jasmin KLINGENSCHMID, Walter KLINGENSCHMID, Christian KLOCKER, Michael KLUCKNER, Natalie KLUCKNER, Sandra KNAUS,

Christian KNEISL, Nicole KÖHLBICHLER, Mario KOFLER, Robin KOFLER, Peter KOFLER, Josef KOFLER, Silvia KOFLER, Werner KOLB,

Gabriele KOLLREIDER, Johann KOLLREIDER, Claudia KONRAD-HUBER, Nebojsa KOSTIC, Franz KRANEWITTER, Eva KRAPF, Sandra

KRIEGL, Peter KRITZINGER, Johannes KRÖLL, Waltraud KRÖLL, Birgit KRUG, Karoline KUEN, Reinhard KUGLER, Melek KULOGLU,

Wolfgang KUNZ, Sandy KUSS, Julia LACHBERGER, Bernhard LADNER, Klaus LAMPRECHT, Catrin LAMPRECHT, Stefan LANG,

Brigitte LARCHER, Karin LARCHER, Bettina LAX, Dominik LEBEDA, Brigitte LECHLEITNER, Herbert LECHNER, Martin LECHNER,

Manuela LECHNER, Andreas LEITINGER, Helga LEITNER, Tamara LENER, Anna LENTNER, Christiane LEUPRECHT, Renate LEZUO,

Martin LINSER, Gottfried LIRK, Thomas LOTRITSCH, Patricia LUTZ, Peter MACHAT, Claudia MADL-SCARTEZZINI, Martina MAIACHER,

Marion MAIER, Hubert MAIR, Dorothea MAIR, Gregor MARGREITER, Norbert MARGREITER, Christine MARKSTEINER, Anton MARKT,

Josef MARTINER, Ingrid MASSANI, Josef MAYR, Christoph MAYR, Helmut MAYR, Karlheinz MAYR, Renate MEDINA-HOFER, Claudia

Employees | 11 |

MESSNER, Margit METZLER, Manfred MIGLAR, Carola MIGLAR, Daniel MIKULA, Monika MIMM, Bernhard MITTERMAIR, Manfred

MLADEK, Stefan MOLL, Hubert MONAI, Markus MOR, Oswald MOSER, Eva MRAK, Werner MÜLLER, Hubert MÜSSIGGANG, Angelika

MÜSSIGGANG, Susanne NAGELE, Ursula NASCHBERGER, Jasmine NEUHAUSER, Alexander NEUNER, Birgit NEUNER, Andreas

NEUNER, MBA, Julia NEURAUTER, Franziska NIESCHER, Walter NITZLNADER, Ruth NOCKER-LEDERER, Bernd NÖHRER, Barbara

OBERDANNER, Helmut OBERERLACHER, Frank OBERHAUSER, Stefan OBERHOFER, Georg OBERMÜLLER, Günter OBERZAUCHER,

Christian OBEX, Monika ÖTTL, Doris OFNER, Michaela ORTNER, Monika ORTNER, Michaela OSS, Karin OSTERMANN, Nicole PARDAT-

SCHER, Konrad PARDELLER, Christina PARTL, Thomas PATSCH, Brigitte PEDRINI, Marina PEDRINI, Josef PEER, Julia PENZ, Cornelia

PERKOUNIGG, Romina PEROTTI, Edgar PFEIFER, Sonja PFENNICH, Sabine PFERSCHI, Monika PFLANZNER, Martina PFLEGER,

Birgit PFURTSCHELLER, Monika PFURTSCHELLER, Marcus PICHLER, Eugenio PIGNATTI, Arlette PILS, Gabriele PINGGERA, Edith

PIRKNER M.A., Friedrich PITTRACHER, Josef PITTRACHER, Marlies PLANK, Markus PLATTNER, Nino PLATTNER, Alexandra PLUNGER,

Christine POCK, Katharina POHL, Eveline POLIN, Karin PRANGER, Martin PRANTER, Lisa PRATY, Karl PRAXMARER, Ines PRINZ,

Gabriela PROBST, Gerhard PROSEN, Christian PRUGGER, Nicole PUCKL, Gertraud PUELACHER, Dietmar PUTSCHNER, Isa RABL,

Michael RAGGL, Bettina RAGGL, Angela RAGGL, Dieter RASPOTNIK, Christiane RECHEIS, Wolfgang REDL, Marco REGENSBURGER,

Karoline REIDER, Stefanie REIMEIR, Petra REISTER-WALLNÖFER, Fränk REITER, Gabriella REUTER, Christina RHOMBERG, Petra

RIEDL, Brigitte RIETH, Silvia RIETZLER, Gerhard RIML, Christa RÖSNER, Stefan ROFNER, Gerhard ROSENDORFER, Christine

ROTTENSTEINER, Monika RUDISCH, Helmuth RUECH, Markus RUECH, Thomas RUETZ, Bibiane RUETZ, Stefan RUF, Klaus SAIGER,

Manfred SAILER, Patricia SANTA, Thomas SATTLEGGER, Thomas SAURER, Clemens SAURER, Roman SAUTNER, Sylvia SCHAMBERGER,

Sandra SCHANDL, Werner SCHARF, Stefan SCHARF, Annemarie SCHEIRING, Sandra SCHELLHORN, Matthias SCHIESTL, Monika

SCHLATTER, Markus SCHLENCK, Claudius SCHLENCK, Claudia SCHLITTLER, Martin SCHMADL, Michael SCHMID, Ferdinand

SCHMID, Harald SCHMIDER, Karin SCHNAUFERT, Brigitte SCHNEIDER, Richard SCHNELLER, Daniel SCHNIEDERS, Romed SCHÖPF,

Brigitte SCHOTT, Hannes SCHREINER, Markus SCHWINGHAMMER, Hubert SEDLMAYR, Andrea SEEHAUSER, Petra SEELAUS,

Manuela SEELAUS, Thomas SEIDL, Christian SEISER, Peter SENFTER, Rudolf SENN, Johann SENN, Alexandra SERVIS, Kerstin

SIEBENHÜNER, Caecilia SILGENER, Michaela SILVESTRI, Emanuel SORAPERRA-AUGUSZTINYI, Renate SPARBER, Sören SPECHT,

Sonja SPECHTENHAUSER, Christoph SPÖCK, Petra SPÖRR, Armin SPRENGER, Markus STABENTHEINER, Carolin STADLER, Rudolf

STAFFLER, Carmen STANGLECHNER, Gerhard STAUD, Martin STECHER, Gebhard STEINACHER, Claudia STEINER, Christian

STEINER, Patrick STEINKELLNER, Michael STEINLECHNER, Elisabeth STEINRINGER, Monika STERN, Nicole STOISER, Melitta

STOLZ, Johannes STOTTER, Markus STREITER, Wolfgang STRICKNER, Inge STROBL, Doris STROBL, Karin STROBL, Elisabeth

Charlotte STUBLER, Peter TAUTSCHER, Barbara TAUTSCHER, Johanna TEMPELE, Patrizia THALER, Birgit THALER, Jacqueline

THALER, Johann THALER, Helmut THEYER, Elisabeth THÖNI, Daniela THURNER, Markus TOLLINGER, Herwig TRAUNER, Christoph

TRAUNFELLNER, Dietmar TRIENDL, Othmar TRIENDL, Katrin TROYER-SOCHER, Notburga TSCHUGG, Claudia TUNNER, Simone

UNGERANK, Brigitte UNSINN, Hans Wolfgang UNTERDORFER, Gerd UNTERLECHNER, Johannes UNTERLUGGAUER, Thomas

UNTERPERTINGER, Margreth UNTER WEGER, Andrea VERDROSS, Olivia VESELY, Iris VÖTTER, Benjamin VOGLER, Alfred

VOLDERAUER, Veronika VOLDERAUER, Patrick WACKERLE, Johann Peter WALLNER, Christine WALLNÖFER, Stephan WALSER,

Vanessa WALTER, Sonja Fernanda WANKMUELLER, Barbara WARSCHER, Thomas WASS, Sabine WASS, Philipp WEBER, Tanja

WECHSELBERGER, Thomas WECHSELBERGER, Bernd WEIDENTHALER, Thomas WEIDINGER, Nadine WEISIELE, Michael WEISS,

Sonja WEITZER, Christine WEIXLER, Evelin WENDE, Wolfgang WENINGER, Detlev WENKO, Markus WIDMANN, Ulrike WIDMOSER,

Ingrid WIEDERMANN, Manfred WIESER, Johannes WIESER, Melanie WILD, Urban WINDBICHLER, Elisabeth WINKLER, Regina

WINKLER, Yvonne WISIOL, Andrea WITTING, Thomas WÖBER, Claudia WOLF, Maria WOLF, Martina WOMBACHER, Andreas WOPF-

NER, Claudia WOTZEL, Maria WURZER, Hubert WURZER, Nazmiye YAYAN, Hannes ZACCHIA, Patrick ZANGERL, Andrea ZANKL,

Elfriede ZECHNER, Petra ZEILLINGER, Aegidius ZETTINIG, Werner ZIMA, Stefan ZIMMER, Renate ZIMMERMANN, Erika ZINGERLE,

Sabine ZÖHRER, Christian ZOLLER, Markus ZORN, Markus ZWIEFELHOFER


| 12 |

Raiffeisen in Tyrol

Raiffeisen Banking Group Tyrol

The Raiffeisen Banking Group Tyrol (RBGT) forms by far the

densest branch network in the federal state, with 81 independent

local Raiffeisen banks, RLB Tirol AG and a total of 262

bank branches. This enables us to provide the Tyrol population

and local business throughout the region with banking services

suited to customers' needs. Raiffeisen advisors focus on advising

customers on an individual basis, taking an overall view of

their situation. In addition, a wide range of self-service facilities

are provided so that customers can conduct the most important

banking transactions themselves, saving time and money.

As customer-oriented universal banks and integrated fi nancial

services providers, Tyrol Raiffeisen banks are closely allied and

in particular also use the services provided by Raiffeisen-Landesbank

Tirol AG. The product range offered by the specialised

subsidiaries and other companies in which RLB Tirol AG holds

a stake also makes a substantial contribution towards covering

customer needs to a large extent. The spectrum extends from the

fi nancial services provided by the securities fund company Raiffeisen

Capital Management to the insurance company Raiffeisen

Versicherung, Raiffeisen-Leasing and the building society Raiffeisen

Bausparkasse. Each of these plays an important role within

their particular segment on the Tyrol market.

In the case of local authorities in Tyrol, RBGT offers a special

service, Raiffeisen-Kommunalbetreuung Tirol, which guarantees

cost certainty for local authorities when realising their building

projects, from planning to handover of the keys.

Tyrol Raiffeisen banks are currently constructing for their customers

the Raiffeisen Home Centre in the recently built Energiehaus

park at the DEZ shopping centre in Innsbruck. In cooperation

with Tyrol companies, this 300 m² of fl oor space will house an

advice, training and exhibition centre. It was built as a "passive

house" and provides a full range of home-related services – from

non-binding advice on fi nancing a property purchase to renovating

a building to the highest standard. The Home Centre will also

accommodate partners who extend the product range beyond

the fi nancing, for example free legal advice or clarifi cation of tax

issues, or specialist advice on furnishings. The Raiffeisen Home

Centre will also serve as the new premises for IG Passivhaus

Tirol.

Tyrol Raiffeisen banks operate on the basis of a set of values that

has grown over time and is constantly being updated to current

needs. They have around 135,000 members who are co-owners

from their region or their original market area. One in three Tyrol

Raiffeisen members already holds a Raiffeisen membership card,

which identifi es the holder as recognising the Raiffeisen set of

values. It is also a Maestro card that can be used anywhere in the

world, making it an important element in the payments system.

Almost half of Tyrol's population is a Raiffeisen bank customer.

The proportion of main customers is 42 per cent, placing RBGT

in top spot on the Tyrol banking market. This high standing is

expressed, for example, in aggregated total assets of EUR 16,118

million as at the reference date 31 December 2009. On that date,

Tyrol Raiffeisen banks and RLB Tirol AG managed initial deposits,

consisting of demand, time and savings deposits, of EUR 7,895

million – fi gures that are a particularly impressive refl ection of

customers’ trust.

Tyrol Raiffeisen banks are leaders in the fi nancing of private and

corporate customers. As at the reference date 31 December

2009, total lending amounted to EUR 7,729 million.

With some 2,750 attractive and crisis-proof jobs locally or in the

regions, Tyrol Raiffeisen banks are one of the largest employers

in the federal state. Consequently they also have a particularly

important place in the regional value-added chain. The profi ts

that the banks generate are not transferred elsewhere, but are

reinvested locally to a large extent. When investments are made,

e.g. in business premises, local fi rms are primarily contracted to

carry out the work, thus securing and creating jobs.

The Raiffeisen Banking Group Tyrol has always stood for security,

proximity and trust. It has been making valuable contributions

to sport, culture and welfare for more than 120 years. In the year

under review alone, RBGT has made available an amount of EUR

5 million from its profi ts for these causes.

OBERAU

Raiffeisen in Tyrol | 13 |

It goes without saying that young people are the future of our

society and, as such, are also a priority for RBGT. With 90,000

members, Tyrol's Raiffeisen Club is the largest leisure association

in Western Austria. The appropriate support provided by the

260 Club supervisors in the Tyrol Raiffeisen banks is the basis

for youth development schemes. Age-related offers are made by

the bank such as the "All-Inclusive Club Package", as well as a

broadly based leisure program including reductions, events and

support for job seeking and further education.


| 14 |

Raiffeisen in Austria

Raiffeisen Banking Group Austria Structure of the

Raiffeisen Banking Group Austria

The Raiffeisen Banking Group Austria (RBG) forms the densest

branch network in the country, with 541 independent local

Raiffeisen banks, a total of 2,263 bank branches, eight regional

headquarters at federal state level and Raiffeisen Zentralbank

Österreich AG (RZB) as the top-level institution. Around 1.7 million

Austrians are members of Raiffeisen banks and consequently

co-owners. More than 40 per cent of all Austrians are customers

of a Raiffeisen bank.

As a universal banking group, Raiffeisen offers its customers a

comprehensive range of fi nancial services. The close alliance,

which includes the specialised subsidiaries and other companies

in which RZB holds a stake, enables all Austrian Raiffeisen banks

to meet the individual requirements of each customer group and

to provide an integrated range of services "under one roof".

The local Raiffeisen banks are independent universal banks with

a consistent, customer-oriented business direction, offering a full

range of banking services. The Raiffeisen banks also own their

respective regional headquarters.

The regional headquarters, such as Raiffeisen-Landesbank Tirol

AG in Tyrol, provide liquidity settlement for the federal state and

offer additional centralised services for the Raiffeisen banks in

their particular federal state. The regional headquarters additionally

operate as independent universal banks and are shareholders

in Raiffeisen Zentralbank Österreich AG.

Raiffeisen Zentralbank Österreich AG (RZB) is the top-level institution

of the RBG. Established in 1927, it is now one of the leading

commercial and investment banks in Austria. RZB is also a leading

fi nancial services provider in Central and Eastern Europe and

is a specialist in this growth region.

The comprehensive range of fi nancial services provided by Raiffeisen

banks includes the services of special-purpose Raiffeisen

companies, such as the securities fund company Raiffeisen Capital

Management, the insurance company Raiffeisen Versicherung,

Raiffeisen-Leasing and the building society Raiffeisen Bausparkasse,

which are among the market leaders in Austria.

The Raiffeisen Banking Group has more than 23,000 employees

in Austria, making it one of the largest employers.

Raiffeisen Customer Guarantee Collective

When it introduced the Raiffeisen Customer Guarantee Collective

Austria, the Raiffeisen Banking Group was in the vanguard

of deposit security. The Collective was formed in 2000. In times

of globalisation and large-scale mergers, its purpose is to give

legally binding effect to principles that had been an unwritten rule

within the Group right from the start.

The Raiffeisen Customer Guarantee Collective Austria guarantees

up to 100 per cent of customer deposits in addition to Austria's

statutory deposit security. By doing so, Raiffeisen sets in stone

that for which the trademark Giebelkreuz, a symbol of protection,

has always stood, namely security and trust.

The Raiffeisen Customer Guarantee Collective Austria comprises

the individual customer guarantee collectives at federal state

level, all amalgamated at federal level. All these banks have

entered into a legally binding obligation based on a precisely

regulated system of distribution and exposure. Under this obligation

they provide their fi nancial reserves to guarantee customer

deposits even in the event of a bankruptcy (which has so far never

occurred), above and beyond the statutory deposit guarantee.

If the fi nancial capacity of a customer guarantee collective at

fede ral state level does not cover all the protected customer

claims against an insolvent bank, the members of Raiffeisen Customer

Guarantee Collective Austria use their fi nancial reserves to

fulfi l all the customer deposits and in-house issues of the relevant

institution, up to 100 per cent. Instead of bankruptcy claims, customers

are offered valuable claims against other institutions in the

Raiffeisen Banking Group.

At present around 79 per cent of all Austrian Raiffeisen banks

belong to Raiffeisen customer guarantee collectives. As a result,

about 93 per cent of the entire customer deposits held by RBG

are guaranteed in the Raiffeisen Customer Guarantee Collective

Austria (based on 2007 annual fi nancial statements).

Shareholdings in Austrian fi nancial

institutions

Raiffeisen Centrobank

Kathrein & Co

Raiffeisen Capital Management

Raiffeisen Factor Bank

Austrian National Bank

Kontrollbank

PayLife

Raiffeisen-Leasing

Raiffeisen Bausparkasse

card complete

UNIQA

etc.

Network in CEE

Raiffeisen International

Network banks

Leasing International

Other subsidiaries

1.7 million members

Raiffeisen banks: 541 Raiffeisen banks

Regional Raiffeisen banks: 8 regional headquarters, Zveza Bank

Foreign branch offi ces

and shareholdings

Branches

Representative offi ces

Banks

Raiffeisen in Austria | 15 |

Special-purpose and

settlement companies

Payment and

securities settlement fi rms

IT companies

Property & trading fi rms

Private equity

etc.


Management Report


| 18 |

Management Report

Macroeconomic development in 2009

Bank rescue schemes, economic stimulus

packages and expansive monetary policies

by central banks

The year 2009 was ushered in with pessimistic expectations.

After the insolvency of the US investment bank Lehman Brothers

in September 2008, it quickly became clear that the crisis,

which until then had been mainly limited to the fi nancial sector,

was also a problem for the real economy. At the start of 2009

many observers even thought that a global depression, as last

seen in the 1930s, was defi nitely a possibility. Governments and

central banks made unprecedented efforts to prevent the global

economy from sliding into a defl ationary downward spiral. As

a result, macroeconomic development was underpinned by a

number of Western governments through bank rescue schemes

and economic stimulus packages, on an unparalleled scale.

These measures were accompanied by expansive monetary policies

on the part of central banks. In addition to historically low key

interest rates (a zero-interest-rate policy was even pursued in the

US), central banks provided the capital markets with the necessary

liquidity. The measures taken to stabilise the economy and

capital markets had an impact. Although the fi rst three months of

2009 were still very weak in many Western economies, there was

a turnaround in the second quarter.

Weakest year economically since the

Second World War

In mid-year there were signs indicating an end to the recession,

both in the US and in the Eurozone. Of course, this only applies

as a quarterly comparison. Viewed over the whole year, 2009

will go down in history as one of the weakest years economically

since the end of the Second World War. For 2009, experts estimate

the GDP shrinkage rate in the US at around 2.5% and about

4.0% for the Eurozone. In Austria the whole year 2009 could see

a decline of 3.6% in comparison with 2008. Equity markets in

particular responded to the unexpectedly rapid economic stabilisation

with a sharp turnaround from March 2009 onwards, while

Euro government bonds remained rather directionless throughout

the year. The Euro bond market initially tended to be rela-

tively weak as the fi rst concerns about infl ation emerged. Yields

rose accordingly. In the second half of the year the bond markets

calmed down again, with the yield on 10-year Euro benchmark

bonds at year-end only slightly above its level at the start of the

year. Corporate bonds, both investment grade and high-yield,

were particularly in demand among investors. Commodities also

celebrated a comeback in 2009. The price of one troy ounce of

gold reached USD 1,226.00, a record high.

Equity markets place their faith in hope –

Outlook for 2010

No investment market experienced an emotional roller-coaster

ride to the same extent as equity markets over the past 12

months. Major pessimism about the economy was the dominant

theme among investors until the market bottomed out in

mid-March. As a result the leading equity indices lost a further

20–25% in the fi rst few months in comparison with the price level

at the start of the year, which had already been tightly squeezed.

Then there was a sharp turnaround. Firstly the important early indicators

of economic activity stabilised, such as the US Purchasing

Manager Indices or the German Ifo index. This signalled an

imminent end to the recession while at the same time triggering

an equity rally. For the time being, critical questions as to how far

the soaring equity prices corresponded to economic reality took

a back seat. On balance the major equity indices saw doubledigit

growth in 2009. Converted into Euro, of course, the picture

is more diverse. European stock markets did better than those

quoted in US Dollars or Yen. In Europe the ATX enjoyed particular

success, chiefl y because of the previous unjustifi ed sell-off of

Austrian stocks, but also due to the gradual rise in confi dence

about Eastern Europe. Stock markets in Russia and in China

doubled or rose even higher in the past year. These markets also

saw the biggest downward correction in 2008, however, such that

even these extreme gains could only make up for the previous

losses to a certain extent.

Directionless government bonds,

corporate bonds in demand

After an unprecedented bond rally in the second half of 2008,

when investors practically fl ed to European government bonds,

the Euro government bond market stabilised in 2009 at a relatively

low level of yields. Initially, infl ation was the primary concern due

to the unchecked supply of liquidity from the central banks. The

yield on 10-year Euro benchmark bonds climbed from below 3%

to 3.7% by mid-year. In the second half of the year, however, it was

acknowledged that the risk of infl ation remains moderate for the

time being. The 10-year yield fell back to 3.4% by year-end, only

slightly above its level at the start of the year. Corporate bonds

were nevertheless the real winners among investors. After the dramatic

sell-off of corporate bonds in the wake of the Lehman bankruptcy,

this market recovered signifi cantly in 2009. There was a

proper fl ood of issues because many industrial companies feared

being caught in a credit squeeze. In the end the corporate issues

were more or less snapped up by investors. The credit spread,

i.e. the interest-rate difference between corporate bonds with a

good credit rating and government bonds, fell over the course of

the year from around 400 to the present level of some 140 basis

points. Although this is still considerably higher than the average

50 basis points in the years 2003 to 2007, this fi gure does refl ect

the recklessness at that time, culminating in the fi nancial crisis.

Austrian

economy

Management Report | 19 |

The Austrian economy was unable to escape the downward

economic trend throughout the world. The shrinkage rate of

3.6% of GDP nonetheless placed it above the Eurozone average.

From mid-2009 onwards, however, there was a turnaround in the

economy, carried along by the expansive economic policy worldwide.

This recovery should continue in the next few months, with

GDP growth of 1.5% forecast for 2010.

The international economic crisis became apparent in Austria

principally through the slump in exports. They fell by 16.8%

in comparison with the previous year, with exports to the new

EU member states particularly hard hit. From the middle of the

year, however, recovery could also be seen here too, buoyed up

primarily by stronger demand from Germany. The situation on the

employment market could be described as dramatic. On the one

hand, economic stimulus packages, state-sponsored short-time

work and youth employment schemes stabilised the demand

for labour and curtailed the rise in unemployment. On the other,

56,000 jobs were lost, after seasonal adjustment, since the peak

of employment in mid-2008, sending the unemployment rate up

to 7.1%. This negative trend on the employment market will continue

in 2010. In contrast, the economic crisis had a positive impact

on the rate of infl ation, which reached a record low of 0.5%.


| 20 |

Management Report

Business development

Raiffeisen-Landesbank Tirol AG can look back on an extraordinary year 2009. The overfl ow of the fi nancial market crisis into the real

economy resulted in considerable additional expense for credit risk management. The net result was also impaired by an instance of

malversation, although no customer suffered any loss as a result. In contrast, operating income and the need to make provisions for

securities have performed well. Despite the diffi cult economic climate, a substantial improvement was made to our earnings from

ordinary business activities and, in a comparison with our competitors in the sector, we were able to generate a very good net result.

Total assets in EUR million

31.12.2002 31.12.2003 31.12.2004 31.12.2005 31.12.2006 31.12.2007 31.12.2008 31.12.2009

4.922 5.120 5.086 4.882 4.758 5.047 6.654 7.296

Use of funds/asset structure

31.12.2009 31.12.2008 Change

EUR m Per cent EUR m Per cent EUR m Per cent

Receivables from

banks

Receivables from

2,838.88 38.9 % 2,817.37 42.3 % 21.51 0.8 %

customers 2,474.84 33.9 % 2,424.18 36.4 % 50.66 2.1 %

Securities

Shareholdings including

shares

1,624.45 22.3 % 1,073.49 16.1 % 550.96 51.3 %

in affi liated companies 212.32 2.9 % 182.67 2.7 % 29.65 16.2 %

Other assets 145.40 2.0 % 155.91 2.3 % -10.51 -6.7 %

Assets 7,295.89 100.0 % 6,653.62 100.0 % 642.27 9.7 %

The increase in assets of 9.7 per cent (EUR 642.27 m) to EUR 7,295.89 m was primarily due to an increase in the securities in the company's

own possession. Securities in the company's possession rose by 51.3 per cent (EUR 550.96 m) to EUR 1,624.45 m. Receivables

from banks rose slightly by 0.8 per cent (EUR 21.51 m) to EUR 2,838.88 m, and receivables from customers by 2.1 per cent (EUR 50.66

m) to EUR 2,474.84 m. Shareholdings including shares in affi liated companies increased by 16.2 per cent (EUR 29.65 m) to EUR 212,32

m. Other assets decreased by 6.7 per cent (EUR 10.51 m) to EUR 145.40 m.

Receivables from customers consisted of the following as at year-end 2009:

Industry comparison

Management Report | 21 |

2009 2008 Change

compared to

total lending

EUR k EUR k Per cent Per cent

Agriculture, forestry and co-operatives 23,409 23,652 -1.0 % 0.9 %

Transport 151,100 149,732 0.9 % 6.1 %

Commerce 504,038 446,403 12.9 % 20.4 %

Industry 155,760 153,561 1.4 % 6.3 %

Employed, private individuals 454,768 480,391 -5.3 % 18.4 %

Tourism, leisure industry 324,468 331,485 -2.1 % 13.1 %

Public bodies and social security 195,335 171,163 14.1 % 7.9 %

Freelancers, self-employed 49,876 51,839 -3.8 % 2.0 %

Retailing

Other (housing associations

145,348 135,852 7.0 % 5.9 %

and other non-banks) 470,742 480,105 -2.0 % 19.0 %

Total 2,474,844 2,424,183 2.1 % 100.0 %

Equity capital (in accordance with Section 23 BWG (Austrian Banking Act))

31.12.2009 31.12.2008 31.12.2007 Change 09/08

EUR k EUR k EUR k EUR k Per cent

Subscribed capital 84,950 80,000 80,000

Reserves 258,587 237,718 228,921

Intangible assets -3 -14 -50

Core capital 343,534 317,704 308,871 25,830 8.1 %

Secondary capital 0 7,043 14,477

Supplementary equity 13,752 7,043 14,477 6,709 95.3 %

Equity before deductions

Deduction in accordance with Section 23 (13)

357,286 324,747 323,348 32,539 10.0 %

BWG (Austrian Banking Act) -2 -2 -2,502

Short-term secondary capital 0 137 0

Actual equity

Equity ratio in accordance with Section 22 BWG

357,284 324,882 320,846 32,402 10.0 %

(Austrian Banking Act) (> 8%) 10.55 % 9.68 % 11.28 %

The equity held by Raiffeisen-Landesbank Tirol AG increased by 10 per cent (EUR 32.40 m) to EUR 357.28 m in the year under review.

The equity ratio is 10.55 per cent, well above the statutory equity quota of 8 percent as required under Section 22 (1) BWG (Austrian

Banking Act).


| 22 |

Management Report

Net margin Cost/income ratio

31.12.2009 31.12.2008 31.12.2007 31.12.2009 31.12.2008 31.12.2007

0.57 % 0.67 % 0.70 % 63.80 % 59.58 % 65.21 %

Return on equity Total profi tability

31.12.2009 31.12.2008 31.12.2007 31.12.2009 31.12.2008 31.12.2007

4.78 % 4.65 % 5.58 % 0.23 % 0.23 % 0.35 %

The net margin is 0.57 per cent, the cost/income ratio is 63.80 per cent, the return on equity is 4.78 per cent and total profi tability

is 0.23 per cent.

Source of funds/capital structure

31.12.2009 31.12.2008 Change

EUR m Per cent EUR m Per cent EUR m Per cent

Liabilities

to banks 4,397.38 60.3 % 3,765.42 56.6 % 631.96 16.8 %

Giro deposits 747.75 10.2 % 662.72 10.0 % 85.03 12.8 %

Savings deposits 587.30 8.0 % 590.35 8.9 % -3.05 -0.5 %

Certifi cated liabilities 1,075.89 14.7 % 1,099.38 16.5 % -23.49 -2.1 %

Equity capital 343.54 4.7 % 317.72 4.8 % 25.82 8.1 %

Other liabilities 144.03 2.0 % 218.04 3.3 % -74.01 -33.9 %

Liabilities 7,295.89 100 % 6,653.62 100.0 % 642.27 9.7 %

On the liabilities side, the increase in total assets is primarily attributable to a signifi cant rise in liabilities to banks. These rose by 16.8

per cent (EUR 631.96 m) to EUR 4,397.38 m. A signifi cant rise was also recorded by giro deposits, by 12.8 per cent (EUR 85.03 m) to

EUR 747.75 m, and equity capital by 8.1 per cent (EUR 25.82 m) to EUR 343.54 m. The following decreased: other liabilities by 33.9 per

cent (EUR 74.01 m) to EUR 144.03 m, certifi cated liabilities by 2.1 per cent (EUR 23.49 m) to EUR 1,075.89 m and savings deposits by

0.5 per cent (EUR 3.05 m) to EUR 587.30 m.

Income statement

2009 2008 Change

EUR m EUR m EUR m Per cent

Net interest income 61.65 50.78 10.87 21.4 %

Income from securities and investments 13.53 16.13 -2.60 -16.1 %

Income from commission 24.76 27.48 -2.72 -9.9 %

Income / expenses from fi nancial transactions 1.80 4.57 -2.77 -60.6 %

Other operating income 12.42 11.68 0.74 6.3 %

Operating income 114.16 110.64 3.52 3.2 %

Personnel expenses -41.53 -40.34 1.19 2.9 %

Other administrative expenses (cost of materials) -21.24 -20.43 0.81 4.0 %

Depreciation of assets -3.61 -3.94 -0.33 -8.4 %

Other operating expenses -6.45 -1.21 5.24 433.1 %

Operating expenses -72.83 -65.92 6.91 10.5 %

Operating result

Balance of reversals from / allocations to the provisions

41.33 44.72 -3.39 -7.6 %

for receivables

Balance of reversals from / allocations to the provisions

-24.11 -15.26 8.85 58.0 %

for securities, investments -0.51 -14.39 13.88 -96.5 %

Earnings from ordinary business activities 16.71 15.07 1.64 10.9 %

Income situation

Operating income performed positively in 2009. It increased by

3.2 per cent (EUR 3.52 m) to EUR 114.16 m. This was particularly

due to the net interest income which increased by 21.4 per cent

(EUR 10.87 m) to EUR 61.65 m and a slight rise in other operating

income by 6.3 per cent (EUR 0.74 m) to EUR 12.42 m. Income/expenses

from fi nancial transactions fell by EUR 2.77 m to EUR 1.80

m. Income from securities and investments also decreased by 16.1

per cent (EUR 2.60 m) to EUR 13.53 m and income from commission

dropped by 9.9 per cent (EUR 2.72 m) to EUR 24.76 m.

Operating expenses increased this year by 10.5 per cent (EUR

6.91 m) to EUR 72.83 m, due principally to a rise in other operating

expenses by EUR 5.24 m to EUR 6.45 m. However, this

increase is due exclusively to the one-off effect of the abovementioned

malversation. A slight rise was posted by personnel

expenses, by 2.9 per cent (EUR 1.19 m) to EUR 41.53 m, and other

administrative expenses by 4 per cent (EUR 0.81 m) to EUR 21.24

m. On the other hand, depreciation of assets decreased by 8.4

per cent (EUR 0.33 m) to EUR 3.61 m.

The balance from provisions for receivables and allocation to

provisions for contingent liabilities, as well as income from the

reversal of provisions for receivables and from provisions for

contingent liabilities increased appreciably by EUR 8.85 m to EUR

24.11 m as a consequence of the fi nancial market crisis shifting to

the real economy. This shifting is also apparent in the substantial

reduction in the balance resulting from provisions for securities

that are valued like fi nancial investments, and for investments, as

well as income from provisions for securities that are valued like

fi nancial investments, and for investments, by EUR 13.88 m to

EUR 0.51 m.

Despite the diffi cult economic climate, we managed to increase

the earnings from ordinary business activities by 10.9 per cent

(EUR 1.64 m) to EUR 16.71 m.

Bank branches

Management Report | 23 |

As at 31 December 2009, Raiffeisen-Landesbank Tirol AG was

represented in the market territory by 23 branches, fi ve of which

are self-service. The employees at our branches look after more

than 66,500 private and commercial customers.

Personnel

In the 2009 fi nancial year, Raiffeisen-Landesbank Tirol AG had

an average of 523.50 employees (502.7 salaried employees and

20.8 wage-earners). This represents a decrease of 1.5 per cent in

comparison with 2008.


| 24 |

Management Report

Risk Report

Modern risk management

Active risk management is a major priority for Raiffeisen-Landesbank

Tirol AG to secure its long-term success. In compliance with

statutory requirements (BWG (Austrian Banking Act) and Basel II),

RLB Tirol AG has set itself the objective of guaranteeing the security

and profi tability of the bank in the interests of its customers

and owners, by using up-to-date methods and appropriate risk

management and controlling systems. Our experience in 2009

has confi rmed that our risk policy, risk management and their

organisation are appropriate.

Principles of risk policy

The principles of risk policy are defi ned by the Board of Managing

Directors, and are regularly reviewed and modifi ed as necessary:

• The Board of Managing Directors and all the employees feel

an obligation to comply with the principles of risk policy and

make their day-to-day decisions in line with these directives.

• If the risks are unclear or there are doubts about methodology,

the principle of prudence is employed.

• The introduction of new business areas or products is

generally preceded by an appropriate analysis of the specifi c

business risks involved (product launch process).

Principles of risk management

Our risk management approach is based on the following principles:

• The Board of Managing Directors bears overall responsibility

for risk management supervision within Raiffeisen-Landesbank

Tirol AG, while the Supervisory Board reviews the bank's

risk policy at regular intervals.

• Loan, market, liquidity and operational risks are managed as

a coordinated process at all the relevant levels of the bank.

• The risk committee prepares and proposes the risk strategy,

the limitation of risk capital within the scope of risk-bearing

capacity as well as risk capital allocation.

Organisation of risk management

Risk management is organised in a manner that prevents confl icts

of interest on both a personal and organisational level (separation

of front offi ce/back offi ce). The duties and organisational

procedures involved in the measurement and monitoring of risks,

the limit structure and the actions to be taken should limits be

exceeded, are undertaken by Financing and Market Risk

Management organisational units and are described in the

relevant Raiffeisen-Landesbank Tirol AG manuals.

Credit risk

The credit risk is calculated for counterparts, banks, investments,

countries and concentrations of positions.

The extension of loans, i.e. the specifi c acceptance of risk, is one

of the core business areas of Raiffeisen-Landesbank Tirol AG.

For this reason the Financing Management organisational unit

supports the sales units in checking, measuring and controlling

the credit risk, as well as managing distressed loans. Various

analyses of the existing risk profi le are an integral part of Financing

Management reporting. Closing date reports and forecasts

are prepared in the course of periodic risk committee meetings.

Risk assessment and control methods have been developed and

implemented in line with the principle of proportionality. Different

weightings are given to the risk content of loans in the relevant

calculations. On the basis of supervisory requirements and recommendations,

and to provide business management benefi ts,

RLB Tirol AG has set itself the task of continually developing and

improving the risk management process.

The risk presented by a borrower is considered on two dimensions

using an in-house rating system. This involves an ongoing

assessment of the business situation on the one hand, and the

evaluation and review of collateral to reduce risk on the other.

When supplemented by aggregation, control, monitoring and

checking, this ensures a risk management process that is active

at every stage.

The related tasks and organisational procedures, as well as the

credit risk strategy approved by the Board, are clearly described

in the Raiffeisen-Landesbank Tirol AG credit manual. They have

also been communicated to all personnel with executive functions

and are additionally available online. This ensures that in each

particular case, only risks that comply with our risk policy are

actually incurred. In addition, suffi cient provisions are formed for

existing risks in line with the principle of commercial prudence.

Market risk

Market risk consists of the risks incurred through interest rate

changes, currencies and prices resulting from positions held in

securities, interest rates and foreign exchange. Market risk arises

both in trading and non-trading transactions.

Raiffeisen-Landesbank Tirol AG uses a combination of various

risk parameters in order to control market risks and set appropriate

limits.

Market risk is managed by the Treasury organisational unit, where

all interest rate, currency and price positions are systematically

compiled and appropriately controlled. In addition to the lending

business, Raiffeisen-Landesbank Tirol AG's own transactions are

one of its core business areas.

The Market Risk Management organisational unit supports the

Treasury in the pre- and post-control of market risks. Identifying,

measuring, aggregating and monitoring the market risks (limits)

and reporting constitute the principal areas of responsibility

for Market Risk Management. Special attention is paid to the

systematic monitoring of strategy and hedge positions as part of

dynamic risk monitoring. Daily risk/performance analyses and reports

ensure that, despite volatile fi nancial markets, the Treasury

organisational unit can apply the appropriate control measures.

Liquidity risk

The refi nancing of loans at matching maturities is highly important

at Raiffeisen-Landesbank Tirol AG. This strategy is supplemented

by a liquidity parameters system and the corresponding limits,

with a distinction made between short-term (operational) and

long-term (strategic) liquidity control. Market Risk Management

checks that these limits are adhered to.

A suffi cient supply of short-term and long-term liquidity for possible

bottlenecks is included in the bank's liquidity plans and this

topic is regularly discussed by the risk committee. In order to

strengthen its liquidity position, Raiffeisen-Landesbank Tirol AG

has extended its issuing volume and its portfolio of securities that

can be refi nanced, among other measures. Additional control

instruments are being developed in the context of proactive

liquidity control.

Operational risk

Management Report | 25 |

Operational risks are managed in a separate organisational unit

at RLB Tirol AG. All risks that could arise due to errors in systems,

processes, employee misconduct or external events, are

analysed, assessed and suitable counter-measures are taken.

The equity requirement for operational risk is calculated using the

basic indicator method. Risks are presented and processed using

modern computer systems. Regular checks by Internal Audit

ensure that operational risks are managed appropriately.

Risk-bearing capacity

As part of overall risk control at the bank, the bank's potential for

covering risks is balanced against all major risks, which are determined

using the latest methods and appropriate systems.

The annual risk-bearing capacity fi gure represents the limit for the

total bank risk. Non-quantifi able risks are taken into account by

means of a "risk buffer" as well as the actual measured risk.

All risk-related information is included in the monthly risk-bearing

capacity analyses. They determine total bank risk using various

scenarios in order to ensure that suffi cient capital would be available

in diffi cult situations.

The key factors in Raiffeisen-Landesbank Tirol AG risk management

processes are credit and market risks, as the focus of bank

business is on retail and commercial customers and treasury

transactions.

The market risk resulting from trading books and banking books

is calculated using sensitivity parameters, while credit risk is

analysed using probabilities of default.


| 26 |

Management Report

As well as market-related risks, operational risks are recorded and

calculated within the scope of overall bank management. On the

one hand the purpose is to describe all the risks, and to accommodate

the developments relating to Basel II on the other.

This analysis of risk-bearing capacity is therefore the starting

point for limiting risk activities to a level acceptable to the bank,

with the aim of securing its continued viability as a problem-free

entity and appropriately utilising its income potential.

Solidarity Association of the Tyrol

Raiffeisen fi nancial organisation

Together with Raiffeisen-Landesbank Tirol AG, the Raiffeisen

banks of the Raiffeisen Banking Group Tyrol have set up a Solidarity

Association which ensures, through appropriate measures,

that association members who have run into fi nancial diffi culties

receive help.

Raiffeisen Customer Guarantee

Collective Austria

This association, consisting of Raiffeisen banks, Raiffeisen regional

banks and Raiffeisen Zentralbank Österreich AG, provides

a mutual guarantee on all customer deposits and the banks' own

securities issues, irrespective of the amount. The customer guarantee

collective is organised on two levels: at regional level on

the one hand, and the Federal Guarantee Collective on the other.

The Customer Guarantee Collective thus ensures security for customers,

over and above the statutory deposit guarantee.

Deposit security Outlook for 2010

Deposit security institutions of the

Raiffeisen Banking Group Austria

The member institutions of the Raiffeisen Banking Group Tyrol are

jointly members of the Austrian Raiffeisen deposit security organisation

eGen through the Raiffeisen deposit security agency Tirol

eGen. This deposit security cooperative is the liable institution for

the entire Raiffeisen Banking Group in accordance with Sections

93, 93a and 93b BWG (Austrian Banking Act).

For the purposes of deposit security, an appropriate earlywarning

system has been implemented in the Raiffeisen Banking

Group Austria. Based on a comprehensive reporting system, it

carries out continuous analyses and observations of income and

risk development on the part of all member institutions.

The general economic situation has stabilised to some extent in

the second half of 2009 and this trend should continue in 2010.

This positive picture is nevertheless largely due to government

stimulus and rescue packages. As a result we do not expect

any rapid and sustained economic recovery for Tyrol. Instead,

economic conditions will remain tough, with rising numbers of

insolvencies and higher unemployment.

In 2010, Raiffeisen-Landesbank Tirol AG will continue along the

path of risk-aware and earnings-oriented growth, with a consistent

focus on the customer business. We intend to tap systematically

into our potential in terms of our existing customers and

to acquire new customers through a market campaign. We will

set new benchmarks in the quality of the overall advice offered,

based on defi ned standards for customer care and advisory

services.

We will focus on optimising, standardising and centralising our

settlement and support processes. For this reason, on 1 April

2010 we will outsource payments, back offi ce, balance sheet

analysis and property valuation to our newly established subsidiary

for settlement and services, Raiffeisen Abwicklungs- und

Dienstleistungsgesellschaft. We will also reinforce our customer

business in the market campaign by engaging professional sales

support.

The Board of Managing Directors of Raiffeisen-Landesbank Tirol AG

Dr Hannes Schmid

Chairman of the Board

Reinhard Mayr

Member of the Board

Management Report | 27 |

In order to counteract the challenging economic conditions, we

will continue to place emphasis on identifying and utilising productivity

potential in 2010.

We are well aware that our committed employees are crucial to

the success of Raiffeisen-Landesbank Tirol AG. For that reason

we develop our staff towards specifi c objectives, with particular

emphasis on customer orientation at every stage.

We are extending our partnership and cooperation with the Tyrol

Raiffeisenbanks on the basis of our shared strategic direction. We

are making consistent use of existing synergies to consolidate

our market position as the leading banking group.

We continue to view the economic crisis as a challenge, but also

as an opportunity for Raiffeisen-Landesbank Tirol AG, the toplevel

institution of the Raiffeisen Banking Group Tyrol.

There are no comments on research and development due to

industry considerations.

We have not become aware of any events of special signifi cance

that occurred after the close of the 2009 fi nancial year.

Gobert Sternbach

Member of the Board

Dr Hans Unterdorfer

Member of the Board


Annual fi nancial statements


| 30 |

Annual fi nancial statements

Balance Sheet as at 31 December 2009 – Assets

31.12.2009 31.12.2008

EUR EUR EUR k EUR k

01. Cash in hand, balances at

central banks and post giro offi ces

02. Public-sector debt issues and bills of

exchange eligible for refi nancing at

the Austrian Central Bank:

a) Public-sector debt issues

28,978,566.16 25,074

and similar securities

b) Bills of exchange eligible for

692,503,349.70 190,420

refi nancing at central banks

03. Receivables from banks

0.00 692,503,349.70 0.00 190,420

a) Payable on demand 837,429,790.85 772,103

b) Other receivables 2,001,446,322.92 2,838,876,113.77 2,045,272 2,817,375

04. Receivables from customers

05. Bonds and other

fi xed-interest securities

2,474,843,626.60 2,424,183

a) From public-sector issuers 0.00 0.00

b) From other issuers 847,043,019.54 847,043,019.54 744,600 744,600

of which: the bank's own bonds

06. Shares and other non-

(0.00) (0.00)

fi xed-interest securities 84,910,994.10 138,489

07. Investments 189,975,232.77 160,336

of which: in banks (179,809,928,31) (147,594)

08. Shares in affi liated companies 22,342,152.93 22,342

of which: in banks (0.00) (0.00)

09. Intangible fi xed assets 3,229.44 14

10. Tangible assets

of which: land and buildings used

48,935,023.73 51,234

by the bank for its own operations

11. Own shares or interests and shares

in companies where a controlling or

(23,485,743.21) (23,683)

majority holding is held 0.00 0.00

of which: nominal value (0.00) (0.00)

12. Other assets

13. Subscribed capital that has been

66,797,646.12 78,294

called in, but not yet paid up 0.00 0.00

14. Prepayments and deferred income

of which: deferred taxes in accordance

with Section 198 (10) UGB

676,956.97 1,263

(Austrian Commercial Code) (0.00) (0.00)

TOTAL assets 7,295,885,911.83 6,653,624

Balance Sheet as at 31 December 2009 – Liabilities

Annual fi nancial statements | 31 |

31.12.2009 31.12.2008

EUR EUR EUR k EUR k

01. Liabilities to banks:

a) Payable on demand 1,736,815,806.09 1,978,669

b) With an agreed term or period of notice

02. Liabilities to customers:

2,660,564,954.98 4,397,380,761.07 1,786,749 3,765,418

a) Savings deposits

of which:

587,302,031.37 590,346

aa) Payable on demand (0.00) (0)

bb) With an agreed term or period of notice (587,302,031.37) (590,346)

b) Other liabilities

of which:

747,746,109.75 1,335,048,141.12 662,720 1,253,066

aa) Payable on demand (506,744,080.56) (408,652)

bb) With an agreed term or period of notice

03. Certifi cated liabilities:

(241,002,029.19) (254,068)

a) Bonds issued 0.00 0

b) Other certifi cated liabilities 1,075,886,179.13 1,075,886,179.13 1,099,378 1,099,378

04. Other liabilities 71,651,028.84 122,562

05. Deferred expenses

06. Provisions:

2,207,788.35 884

a) Provisions for severance payments 8,587,083.47 9,061

b) Provisions for pensions 24,293,523.10 22,591

c) Provisions for taxes 0.00 0

d) Other 17,043,438.15 49,924,044.72 18,496 50,148

06.'A' fund for general bank risks 0.00 0

07. Subordinated liabilities 0.00 5,243

08. Supplementary capital 13,846,737.84 32,804

09. Subscribed capital

10. Capital reserves:

84,950,000.00 80,000

a) Committed 79,342,800.00 66,968

b) Uncommitted

11. Revenue reserves:

0.00 79,342,800.00 0 66,968

a) Statutory reserves 8,495,000.00 8,000

b) Reserves required under Articles of Association 0.00 0

c) Other reserves

of which:

96,120,375.68 104,615,375.68 88,230 96,230

Committed reserves

Reserves stipulated in Section 225 (5) UGB

(11,641,930.57) (11,642)

(Austrian Commercial Code)

12. Liability reserves stipulated in Section 23 (6) BWG

(0.00) (0)

(Austrian Banking Act) 67,200,000.00 66,950

13. Profi t for the year

14. Untaxed reserves

6,404,020.50 6,403

a) Valuation reserve due to special depreciation 7,429,034.58 7,570

b) Other untaxed reserves

of which:

aa) Investment reserve under Section 9 EStG

0.00 7,429,034.58 0 7,570

(Austrian Income Tax Act) 1988

bb) Investment exempt amount under Section

(0.00) (0)

10 EStG (Austrian Income Tax Act) 1988

cc) Rent reserve under Section 11 EStG

(0.00) (0)

(Austrian Income Tax Act) 1988

dd) Transfer reserve under Section 12 EStG

(0.00) (0)

(Austrian Income Tax Act) 1988 (0.00) (0)

TOTAL liabilities 7,295,885,911.83 6,653,624


| 32 |

Annual fi nancial statements

Below-the-line items

Balance sheet as at 31.12.2009 Balance sheet as at 31.12.08

EUR EUR EUR k EUR k

re ASSETS:

01. Foreign assets 661,150,380.05 904,309

re LIABILITIES:

01. Contingent liabilities

of which:

a) Accepted and endorsed

186,999,214.15 160,594

bills sold

b) Liabilities resulting from

guarantees and liability arising

(0.00) (0)

from the furnishing of collateral (186,886,205.88) (160,346)

02. Credit risks 264,942,108.00 234,354

of which: liabilities arising from repos

03. Liabilities arising from

(0.00) (0)

trust companies

04. Deductible equity

0.00 0

in accordance with Section 23 (14)

of which: equity

357,283,563.48 324,882

in accordance with Section 23 (14) 7

05. Mandatory equity

(0.00) (137)

in accordance with Section 22 (1)

of which: mandatory equity

in accordance with Section 22 (1)

270,970,102.74 268,399

1 and 4 (270,961,711.13) (268,263)

06. Foreign liabilities

07. Hybrid capital

in accordance with Section 24 (2)

1,327,308,629.11 356,876

5 and 6 0.00 0

Income Statement 2009 – Page 1

Annual fi nancial statements | 33 |

2009 2008

EUR EUR EUR k EUR k

01. Interest and interest-related income

of which:

201,610,556.01 258,899

from fi xed-interest securities (51,194,004.92) (20,731)

02. Interest and interest-related expenses 139,961,631.48 208,119

I. Net interest income

03. Income from securities

and investments

a) Income from shares, other

stocks rights and

61,648,924.53 50,780

non-fi xed-interest securities 2,569,335.32 4,234

b) Income from investments

c) Income from shares in

9,778,019.10 10,161

affi liated companies 1,184,952.74 13,532,307.16 1,737 16,132

04. Income from commission 31,190,300.13 34,054

05. Expenses on commission

06. Income / expenses

6,428,977.13 6,579

from fi nancial transactions 1,802,482.48 4,573

07. Other operating income 12,419,449.90 11,682

II. Operating income

08. General administrative expenses

114,164,487.07 110,642

a) Personnel expenses

of which:

41,528,061.91 40,338

aa) Wages and salaries

ab) Expenses for mandatory social

security contributions and payroll

(27,005,868.65) (26,829)

taxes and mandatory contributions (7,034,941.15) (6,820)

ac) Other social security expenses

ad) Expenses for pension

(1,070,984.75) (1,152)

schemes and support

ae) Allocations to

(3,629,040.33) (3,417)

pension provisions

af) Expenses for severance

payments and contributions

to occupational employee

(1,702,382.25) (937)

pension funds

b) Other administrative

(1,084,844.78) (1,183)

expenses (cost of materials)

09. Provisions for assets contained in

21,236,688.52 62,764,750.43 20,434 60,772

items 09 and 10 on the assets side 3,619,598.28 3,941

10. Other operating expenses 6,453,042.72 1,212

III. Operating expenses 72,837,391.43 65,925

IV. Operating result 41,327,095.64 44,717


| 34 |

Annual fi nancial statements

Income Statement 2009 – Page 2

2009 2008

EUR EUR EUR k EUR k

IV. Operating result (carried forward) 41,327,095.64 44,717

11./12. Balance from provisions for receivables

and allocation to provisions

for contingent liabilities, as well as

income from the reversal of provisions

for receivables and from

provisions for contingent liabilities

13./14. Balance resulting from provisions

for securities that are valued like

fi nancial investments, and for investments,

as well as income from

provisions for securities that are

valued like fi nancial investments,

-24,106,793.64 -15,258

and for investments -509,263.48 -14,387

V. Earnings from ordinary business activities 16,711,038.52 15,072

15. Extraordinary income

of which:

withdrawals from the fund

0.00 0

for general bank risks (0.00) (0)

16. Extraordinary expenses

of which:

allocations to the fund

0.00 0

for general bank risks

17. Extraordinary result

(0.00) (0)

(subtotal of items 15+16) 0.00 0

18. Income taxes

19. Other taxes, unless reported

-1,202,755.55 729

in item 18 -613,076.90 -602

VI. Net profi t 14,895,206.07 15,199

20. Movements in reserves

of which:

-8,494,059.48 -8,797

allocation to the liability reserves (250,000) (3,190)

reversal from the liability reserves (0.00) (0)

VII. Net income 6,401,146.59 6,402

21. Profi t brought forward 2,873.91 1

VIII. Profi t for the year 6,404,020.50 6,403

Annual fi nancial statements | 35 |

Notes: Accounting and valuation principles

General principles

The annual fi nancial statements were prepared in line with the

principles of orderly accounting, as well as the generally

accepted standard that a true and fair view of the assets, fi nancial

position and income situation of the company be provided. The

principle of completeness was observed during the preparation

of the annual fi nancial statements.

The principle of individual valuation was observed during the

valuation of assets and debts and the going concern principle

was assumed.

The principle of prudence was observed insofar as only those

profi ts realised as at the balance sheet date were reported. All

identifi able risks and impending losses were taken into account.

Currency translation

The currencies of the member states in the European Monetary

Union were reported at the fi xed conversion rate.

In accordance with Section 58 (1) BWG (Austrian Banking Act),

amounts in foreign currencies are converted at ECB reference

rates. If these are not published, such amounts are converted at

mean foreign exchange rates (RZB fi xing).

Forward transactions are converted at the forward rate on the balance

sheet date in accordance with Section 58 (2) BWG (Austrian

Banking Act).

Securities

Fixed-interest securities held as fi xed assets were valued according

to the moderated lower of cost or market principle in accordance

with Section 56 (2) BWG (Austrian Banking Act). Other

securities held as fi xed assets were valued according to the strict

lower of cost or market principle.

Securities serving as cover stock for trust funds were regarded

as fi xed assets and valued according to the strict lower of cost or

market method in accordance with Section 2 (3) Austrian Trust

Fund Security Regulation.

Securities held as trading stock and as current assets were

valued according to the strict lower of cost or market method in

accordance with Section 207 UGB (Austrian Commercial Code).

Current asset securities acquired as cover for the bank's own

issues were valued at market value. The securities derived from

the bank's own issues held in current assets were reported at the

repayment amount.

Loans, contingent liabilities and credit risks

Specifi c provision for bad debts or provisions were made for identifi

able risks with borrowers. Additional charges are recognised

as income in the year of granting the loan. A general provision for

bad debts is applied in the case of selected industry risks.

Investments

Investments are valued at cost of acquisition. Extraordinary

depreciation was applied where an impairment that is expected to

be permanent occurred as a consequence of continuing losses,

reduced equity and/or reduced income. ➜


| 36 |

Annual fi nancial statements

➜ Tangible and intangible assets

Tangible assets are valued at the cost of acquisition or production

less scheduled depreciation in accordance with Section 55

(1) BWG (Austrian Banking Act), in conjunction with Section 204

UGB (Austrian Commercial Code).

Additions made in the fi rst half of the year were fully depreciated,

while those in the second half were reported at half the depreciation

for the year.

Low-value assets were fully written-off in the year of purchase.

The service life used as a basis for scheduled depreciation

amounted to 5–67 years for immovable assets, 3–20 years for

movables and 4 years for intangibles.

Extraordinary depreciation was used where a permanent impairment

was probable.

Costs for the bank's own issues

Issue costs and premiums or discounts are allocated on a

straight-line basis over the life of the bonds.

Pension provisions

The provisions for pensions are calculated according to recognised

actuarial principles using the modifi ed Pagler & Pagler

tables (AVÖ 2008) and the partial value method at an interest rate

of 4% for entitlements, taking into account the individual age of

retirement. A deduction for fl uctuations was not applied. Monetary

value adjustments were taken into account by applying the

real interest rate.

Provisions for severance payments

and similar obligations

The obligations relating to severance payments as at the balance

sheet date are calculated using actuarial principles and an interest

rate of 4 per cent, taking into account the individual statutory

retirement age. The provision for obligations relating to long-service

payments was calculated according to actuarial mathematical

principles in a manner analogous to that used for severance

payments. A deduction for fl uctuations was not applied. Monetary

value adjustments were taken into account by applying the real

interest rate.

Other provisions

In line with the principle of prudence, the other provisions covered

all risks that were identifi able when the balance sheet was prepared,

as well as liabilities that were probable or certain, but for

which the amount was uncertain, to an amount deemed necessary

by reasonable commercial judgement.

Liabilities

Liabilities are reported at the nominal value or repayment value,

whichever is higher.

Note on the disclosure media in

accordance with Section 26 BWG

(Austrian Banking Act)

Under Section 26 BWG (Austrian Banking Act), banks have to

disclose information on their organisational structure, their risk

management and their risk capital situation at least once per

year. This information is published on the website of RLB Tirol AG

(www.rlb-tirol.at).

Periods to maturity

The receivables from banks not payable on demand have the following periods to maturity:

Annual fi nancial statements | 37 |

Explanatory notes on balance sheet items

Residual term to maturity 31.12.2009 Previous year

in EUR in EUR k

Up to 3 months 1,518,078,091 1,723,911

More than 3 months and up to 1 year 164,799,940 86,895

More than 1 year and up to 5 years 156,453,760 77,992

More than 5 years 162,114,530 156,473

The receivables from non-banks not payable on demand have the following periods to maturity:

Residual term to maturity 31.12.2009 Previous year

in EUR in EUR k

Up to 3 months 254,457,437 248,470

More than 3 months and up to 1 year 499,113,709 458,396

More than 1 year and up to 5 years 554,624,819 461,561

More than 5 years 968,896,595 1,032,828

The liabilities to banks not payable on demand have the following periods to maturity:

Residual term to maturity 31.12.2009 Previous year

in EUR in EUR k

Up to 3 months 1,738,434,101 883,274

More than 3 months and up to 1 year 481,352,858 467,334

More than 1 year and up to 5 years 337,164,454 296,787

More than 5 years 103,613,542 139,354

The liabilities to non-banks not payable on demand have the following periods to maturity:

Residual term to maturity 31.12.2009 Previous year

in EUR in EUR k

Up to 3 months 182,992,818 203,721

More than 3 months and up to 1 year 272,989,270 339,645

More than 1 year and up to 5 years 265,581,307 151,439

More than 5 years 106,244,358 149,610

The bank's own bonds and other fi xed-interest securities amounting to EUR 156,176,064 (previous year: kEUR 298,518)

will mature in 2010.


| 38 |

Annual fi nancial statements

Securities

The securities admissible for stock exchange listing included in items 5 and 6 on the asset side are divided into listed and non-listed

securities as follows:

2009

Listed

2008

Listed

2009

Non-listed

2008

Non-listed

in EUR in EUR k in EUR in EUR k

Bonds and other fi xed-interest securities

Shares and other non-fi xed-interest

11,694,449 99,381 817,155,768 635,887

securities 11,990,000 11,990 25,700,379 28,245

The securities admissible for stock exchange listing included in items 5 and 6 on the asset side are divided as follows, based on type of

valuation:

2009

Valued like fi xed

assets

2008

Valued like fi xed

assets

2009

Not valued like

fi xed assets

2008

Not valued like

fi xed assets

in EUR in EUR k in EUR in EUR k

Bonds and other fi xed-interest securities

Shares and other non-fi xed-interest

819,739,142 728,112 9,111,075 7,155

securities 35,784,760 37,740 1,905,619 2,494

The listed securities are used for long-term investment. The securities not valued as fi xed assets were acquired for the purpose of

securities trading. RLB Tirol AG maintains a large securities trading book which currently contains securities with a volume of up to

kEUR 10,000.

Other assets

Other assets include accrued interest of EUR 46,220,276 (previous year: kEUR 57,925), which affect payments after the

balance sheet date.

Provisions and other liabilities

In addition, other liabilities include interim bookings with future value dates amounting to EUR 11,115,131 (previous year: kEUR 0)

and accrued interest of EUR 37,759,170 (previous year: kEUR 28,827) and foreign currency valuations of derivatives of EUR 7,396,820

(previous year: kEUR 74,726), which affect payments after the balance sheet date.

Supplementary information

The balance sheet contains the following foreign currency amounts converted into euros:

Annual fi nancial statements | 39 |

Assets 2009 Assets 2008 Liabilities 2009 Liabilities 2008

in EUR in EUR k in EUR in EUR k

1,859,785,905 2,021,317 1,470,147,329 447,081

The following derivative fi nancial instruments were held at the balance sheet date:

Positive Negative

Banking book Trading book Total market value market value

in EUR k in EUR k in EUR k in EUR k in EUR k

Interest rate derivatives

Interest rate swaps 2009 5,596,340 0 5,596,340 96,144 103,764

Previous year 3,430,853 0 3,430,853 81,872 50,205

Forward interest rate transactions 2009 0 0 0 0 0

Previous year 50,000 0 50,000 233 218

Interest rate options – call 2009 195,914 0 195,914 6,039 1

Previous year 77,233 0 77,233 1,612 0

Interest rate options – put 2009 188,661 0 188,661 15 4,957

Previous year

Exchange rate derivatives

Forward foreign exchange transactions

70,395 0 70,395 0 1,031

2009 2,965 0 2,965 13 109

Previous year 12,470 0 12,470 99 178

Currency options 2009 9,401 0 9,401 43 0

Previous year 1,000 0 1,000 11 0

Currency/interest rate swaps 2009 455,711 0 455,711 2,465 9,053

Previous year 1,579,242 0 1,579,242 1,350 77,416

The market value is the amount for which fi nancial instruments could be bought or sold on fair conditions as at the balance sheet date.

Stock exchange prices were used for the valuation, if available. For fi nancial instruments without stock exchange prices, internal

valuation models were used with current market parameters, especially the cash method and option price models.

As at 31.12.2009, securities with a nominal value of EUR 5,000,000 (previous year: kEUR 4,805) serve as cover stock for trust fund

savings deposits of EUR 4,307,404 (previous year: kEUR 3,316). In addition, a trading deposit of EUR 0 (previous year: kEUR 1,000) was

deposited at the OeKB for Xetra Vienna, and of EUR 0 (previous year: kEUR 1,000) at Deutsche Börse Clearing AG for Xetra Frankfurt.

Raiffeisen Zentralbank Österreich AG was provided with sureties of EUR 37,300,000 (previous year: kEUR 88,300) and the OeNB was

provided with EUR 101,400,000 (previous year: kEUR 688,900) for the ECB tender procedure. In addition, securities valued at EUR

996,900,000 (previous year: kEUR 0) were used for the repo transactions via SIX SIS AG. Securities valued at EUR 7,600,000 (previous

year: kEUR 8,600) were deposited for settling securities transactions, as well as securities valued at EUR 0 (previous year: kEUR 400)

for options transactions. In addition, EUR 25,000,000 (previous year: kEUR 26,800) was deposited as sureties for liabilities to banks,

and EUR 10,000,000 (previous year: kEUR 11,000) for GSA/supply of cash. Loans of EUR 3,987,889.98 (previous year: kEUR 4,017)

were granted to Österreichische Kontrollbank AG, of EUR 111,876,226.36 (previous year: kEUR 58,747) to the European Investment

Bank and of EUR 119,470,499.75 (previous year: kEUR 0) to the OeNB.


| 40 |

Annual fi nancial statements

Explanatory notes on the income statement

Charges for subordinated liabilities

In the year under review, charges for subordinated liabilities of EUR 172,821 (previous year: kEUR 284) were paid.

Other operating expenses

In the year under review, losses from claims of EUR 5,759,473 (previous year: kEUR 256) were reported in other operating expenses.

Other operating income

The other operating income shown in the income statement under Item 7 contains the following substantial items:

Item designation 2009 Previous year

in EUR in EUR k

Sector services 2,883,000 2,825

Income from computer centre 2,806,040 2,638

Rental income 1,876,852 1,698

Reimbursement of costs for ELBA 1,812,929 1,551

Refund of personnel costs 1,441,998 759

Other information

Information on employees

In the 2009 (2008) fi nancial year, an average of 502.7 (509.5) salaried employees and 20.8 (21.7) wage-earners were employed.

Cash advances, loans and contingent claims to members of the Board of Managing

Directors and Supervisory Board

The cash advances, loans and contingent claims to members of the Board of Managing Directors and Supervisory Board are

distributed as follows:

Board Amount as at 31.12.2009 Previous year

in EUR in EUR k

Board of Managing Directors 220,765 403

Supervisory Board 198,656 581

The loans to members of the Board of Managing Directors and Supervisory Board are issued according to the usual contract conditions

for the sector. kEUR 191 (previous year: kEUR 69) was repaid in the current fi nancial year.

Expenses for severance payments and pensions

Annual fi nancial statements | 41 |

The amounts for severance payments and pensions for members of the Board of Managing Directors, management personnel and

other employees in the fi nancial year 2009 are distributed as follows:

Group 2009 Previous year

in EUR in EUR k

Board of Managing Directors and management personnel 2,071,489 1,361

Other employees 2,372,103 2,688

Expenses for total remuneration of the Board of Managing Directors & the Supervisory Board

The remuneration paid to members of the Board of Managing Directors and the Supervisory Board in the fi nancial year 2009 are

distributed as follows:

Board 2009 Previous year

in EUR in EUR k

Board of Managing Directors 1,369,787 1,319

Supervisory Board 194,200 106

The total remuneration of former managing directors and their surviving dependants amount to EUR 555,272 (previous year: kEUR 542).

Members of the Board of Managing Directors and Supervisory Board

During the fi nancial year 2009, the following were members of the Board of Managing Directors and Supervisory Board:

a) Board of Managing Directors:

SCHMID Dr Hannes, Chairman of the Board of Managing Directors

MAYR Reinhard, member of the Board of Managing Directors

STERNBACH Gobert, member of the Board of Managing Directors

UNTERDORFER Dr Hans, member of the Board of Managing Directors

b) Supervisory Board:

GRABER Josef, Deputy-Chairman (until 28.04.2009) or Chairman of the Supervisory Board (from 28.04.2009)

GREIDERER Peter, Chairman of the Supervisory Board (until 28.04.2009)

BACHLER Peter-Roman, Member of the Supervisory Board (until 28.04.2009) or Deputy-Chairman of the Supervisory Board (from 28.04.2009)

GOMIG Johannes, Member of the Supervisory Board (until 28.04.2009) or Deputy-Chairman of the Supervisory Board (from 28.04.2009)

MANTL Andreas, Deputy-Chairman (until 28.04.2009) or Member of the Supervisory Board (from 28.04.2009)

BLASSNIG Berthold, Member of the Supervisory Board

MAYR Meinhard, Member of the Supervisory Board

REINSTADLER Gallus, Member of the Supervisory Board

CHODAKOWSKY Josef, Member of the Supervisory Board (from 28.04.2009)

MISSLINGER Dr Michael, Member of the Supervisory Board (from 28.04.2009)

LORENZ Martin, Member of the Supervisory Board (from 28.04.2009)

HOSP Dr Anna,Member of the Supervisory Board (from 28.04.2009)

THALER Johann, Member of the Supervisory Board (from 28.04.2009)

GREIL Alfred, Member of the Supervisory Board (until 28.04.2009)

JEHLE Herbert, Member of the Supervisory Board (until 28.04.2009)

OPPERER Dr Manfred,Member of the Supervisory Board (until 28.04.2009)

Delegates from the Staff Council: ZORN Dr Markus, ZINGERLE Erika, CLEMENTI Doris, SAUTNER Roman, STAFFLER Rudolf,

HOFER Heinz (from 12.01.2009), BAUMANN Heinz (until 12.01.2009)

c) State Commissioners: MANHARD Dr Michael, Court Counsellor, UMLAUF Andreas, Director

Information according to Section 237 No. 12 UGB (Austrian Commercial Code)

The company is a member of Raiffeisenbanken Tirol Kast GmbH, Innsbruck (top-level parent company) and is a fully consolidated

subsidiary. The consolidated fi nancial statements of Raiffeisenbanken Tirol Kast GmbH are lodged at the company's registered offi ce

in Innsbruck.


| 42 |

Annual fi nancial statements

Valuation reserve

Asset items

Assets analysis 2009

As at

01.01.2009 Additions Disposals Re-booking

As at

31.12.2009

07. Investments 3,826,975 0 0 0 3,826,975

of which: to banks 3,244,708 0 0 0 3,244,708

10. Tangible assets 3,743,000 0 140,941 0 3,602,060

of which: land and buildings used

by the bank for its own operations 1,498,062 0 110,300 0 1,387,762

Totals 7,569,975 0 140,941 0 7,429,035

Dr Hannes Schmid

Chairman of the Board

Reinhard Mayr

Member of the Board

Gobert Sternbach

Member of the Board

Annual fi nancial statements | 43 |

Acquisition/

Acquisition/

Cumulated Book value on Book value on Depreciation in

Investment positions

production costs 01.01. Additions Disposals Transfers production costs 31.12. Write-ups depreciation

31.12.

01.01. fi nancial year

02.a) Public-sector debt issues and similar securities

05. Bonds and other fi xed-interest securities

187,270,062 490,080,207 1,800,162 0 675,550,107 0 657,035 674,893,072 186,709,726 90,150

a) Public-sector issuers

b) Other issuers

0 0 0 0 0 0 0 0 0 0

of which: bank's own bonds 737,295,794 492,112,055 408,803,778 0 820,604,070 0 864,929 819,739,141 728,112,395 864,929

06. Shares and other non-fi xed-interest securities 139,551,876 12,796,766 67,340,393 0 85,008,249 0 2,734,458 82,273,792 134,481,678 1,665,132

07. Investments 162,171,810 32,242,076 2,712,502 0 191,701,384 0 1,726,151 189,975,233 160,336,159 454,488

of which: to banks 147,593,928 32,216,000 0 0 179,809,928 0 0 179,809,928 147,593,928 0

08. Shares in affi liated companies 22,342,153 380,900 380,900 0 22,342,153 0 0 22,342,153 22,342,153 0

of which: to banks 0 0 0 0 0 0 0 0 0 0

09. Intangible fi xed assets 18,116,390 0 617,671 0 17,498,720 0 17,495,491 3,229 13,754 10,524

10. Tangible assets

of which: land and buildings used by the bank for

131,574,624 2,768,573 13,477,823 0 120,865,375 0 71,930,351 48,935,024 51,233,892 3,532,045

its own operations 42,473,703 1,168,718 467,428 0 43,174,994 0 19,689,250 23,485,744 23,682,879 1,180,801

Totals 1,398,322,709 1,030,380,577 495,133,229 0 1,933,570,058 0 95,408,414 1,838,161,644 1,283,229,756 6,617,268

These annual fi nancial statements were prepared on 15 February 2010.

On behalf of the Board of Managing Directors

Dr Hans Unterdorfer

Member of the Board


| 44 |

Annual fi nancial statements

Audit Certifi cate

Report on the annual fi nancial statements

I have audited the attached annual fi nancial statements of

Raiffeisen-Landesbank Tirol AG, Innsbruck for the fi nancial year

from 1 January to 31 December 2009, taking into consideration

the accounting.

These annual fi nancial statements comprise the balance sheet

as at 31 December 2009, the income statement for the fi nancial

year ending on 31 December 2009 and the Notes to the annual

fi nancial statements.

Responsibility of the legal representatives

for the annual fi nancial statements and

accounting

The cooperative's legal representatives are responsible for

the accounting and for preparation and content of the annual

fi nancial statements, which present a true and fair view of the

assets, fi nancial position and income situation of the cooperative

in accordance with Austrian requirements under company law

and banking regulations. This responsibility includes: designing,

implementing and maintaining an internal control system, insofar

as this is important for preparing the annual fi nancial statements

and presenting a true and fair view of the assets, fi nancial position

and income situation of the cooperative, in order that they are free

from material misstatement, whether due to intentional or unintentional

errors; selecting and applying appropriate accounting policies

and valuation methods; and making accounting estimates

that are reasonable in the circumstances.

Responsibility of the Auditor and

description of nature and scope of

the statutory audit

My responsibility is to express an opinion on these fi nancial statements

based on my audit. My audit was conducted in accordance

with the applicable Austrian legal regulations and professional

standards. These standards require that I comply with the Rules

of Conduct and that the audit be planned and conducted in

such a manner that reasonable assurance can be obtained as to

whether the fi nancial statements are free of material

misstatement.

An audit involves performing procedures to obtain audit evidence

about the amounts and other disclosures in the fi nancial statements.

The audit procedures selected depend on the judgement

of the Auditor, including his assessment of the risk of material

misstatement, whether due to intentional or unintentional errors.

When conducting this risk assessment, the Auditor takes into

account the internal control system, insofar as this is important for

preparing the annual fi nancial statements and presenting a true

and fair view of the assets, fi nancial position and income situation

of the cooperative. Taking general conditions into consideration,

the purpose is to stipulate appropriate audit procedures, although

not to issue an audit opinion on the effectiveness of the cooperative's

internal controls. The audit also includes an assessment of

the appropriateness of the accounting principles and valuation

methods used and signifi cant estimates made by the legal representatives

of the company, as well as an evaluation of the overall

presentation of the annual fi nancial statements.

I believe that the audit evidence I have obtained is suffi cient and

appropriate to provide my audit with a reasonable basis for our

audit opinion.

Audit opinion

My audit has not led to any reservations. On the basis of the

knowledge gained during the audit, in my judgement the fi nancial

statements comply with the legal regulations, and present a true

and fair view of the assets and fi nancial position of the cooperative

as at 31 December 2009, as well as the income situation of

the cooperative for the fi nancial year from 1 January to 31 December

2009, in accordance with Austrian accounting regulations.

Statements on the Management Report

The Management Report is examined on the basis of legal

requirements to establish whether it corresponds to the annual

fi nancial statements and whether the other disclosures in

the Management Report do not present a false picture of the

cooperative's situation. The Audit Certifi cate must also include a

statement on whether the Management Report corresponds to

the annual fi nancial statements and whether the information is

accurate in accordance with Section 243a UGB (Austrian Commercial

Code).

In my view the Management Report corresponds to the annual

fi nancial statements. The information in accordance with Section

243a UGB (Austrian Commercial Code) is accurate.

Innsbruck, 15 February 2010

Robert Eiweck

Senior Auditor

Report by the Supervisory Board

Annual fi nancial statements | 45 |

Board proposal for the distribution of profi ts

in accordance with Section 126 AktG (Austrian Stock Corporation Act)

A net profi t for the 2009 fi nancial year of EUR 6,404,020.50 was reported. The Board of Managing Directors proposes that for the 2009

fi nancial year, a dividend of EUR 80 per share be paid on the share capital of 80,000 shares, and that the remainder be carried forward

to a new account.

Dr Hannes Schmid

Chairman of the Board

Reinhard Mayr

Member of the Board

Gobert Sternbach

Member of the Board

Dr Hans Unterdorfer

Member of the Board

During the 2009 fi nancial year, the Supervisory Board carried out the duties allocated to it by law and the Articles of Association at its

meetings and was regularly informed concerning important business matters and the development of the bank by the Board of

Managing Directors.

The Supervisory Board examined the annual fi nancial statements and found that these conformed with the properly maintained books

and accounting documents. The Management Report presented by the Board of Managing Directors corresponds to the annual

fi nancial statements. These examinations havegiven no cause for objections.

In addition, the Supervisory Board agrees with the proposal for the distribution of profi ts presented by the Board of Managing Directors.

Director Josef Graber

Chairman of the Supervisory Board


| 46 |

Bank branches

RLB offi ces

Headquarters

Raiffeisen-Landesbank Tirol AG

6021 Innsbruck, Adamgasse 1–7, Postfach 543

Phone: +43 (0)512 5305-0

Fax within Austria: +43 (0)512 5305-2011, fax from abroad: +43 (0)512 5305-3730

S.W.I.F.T. code: RZTI AT 22

E-mail: rlb.adamgasse@rlb-tirol.at

Internet: www.rlb-tirol.at

Branches in East Innsbruck region

Aldrans branch

Dorf 34

6071 Aldrans

Patsch self-service branch

Dorfstraße 22

6082 Patsch

Central Innsbruck region

Adamgasse branch

Adamgasse 1–7

6020 Innsbruck

West Innsbruck region

Höttinger Au branch

Höttinger Au 41

6020 Innsbruck

Imst region

Imst branch

Stadtplatz 9–10

6460 Imst

Lienz region

Lienz branch

Johannesplatz 4

9900 Lienz

Amras branch

Philippine-Welser-Strasse 51

6020 Innsbruck

Ellbögen self-service branch

St. Peter 31

6082 Ellbögen

Rathaus self-service branch

Maria-Theresien-Strasse 18

6020 Innsbruck

Hötting branch

Höttinger Gasse 32

6020 Innsbruck

Nassereith branch

Karl-Mayr-Strasse 116a

6465 Nassereith

Oberlienz self-service branch

No. 31

9900 Oberlienz

Igls branch

Hilberstrasse 24

6080 Igls

Wilten branch

Andreas-Hofer-Strasse 6

6020 Innsbruck

Marktplatz branch

Innrain 6–8

6020 Innsbruck

Tarrenz branch

Trujegasse 1

6464 Tarrenz

Tristach branch

Lavanter Strasse 6

9900 Tristach

Zirl region District branches

Zirl branch

Bühelstrasse 1

6170 Zirl

Freie Berufe district branch

Bürgerstrasse 2

6020 Innsbruck

Pradl branch

Amraser Strasse 76

6020 Innsbruck

die junge RLB

Südtiroler Platz 8

6020 Innsbruck

UNIverselle RLB

Universitätsstrasse 15a

6020 Innsbruck

Ainet self-service branch

No. 90

9951 Ainet

Jungholz district branch

No. 20

6691 Jungholz

Imprint

Responsible for the content:

Raiffeisen-Landesbank Tirol AG

Adamgasse 1-7, 6020 Innsbruck, Austria

Commissioned with production:

Raiffeisen Communication Department,

Thomas Wass, Michael Weiß

Graphic design concept: NERO WerbeGmbH, www.nerografi k.net

Portrait photos: www.fotowerk.at

Archive photos: RLB Tirol AG

Printing: Niederösterreichisches Pressehaus, St. Pölten

© 2010, Raiffeisen-Landesbank Tirol AG

All rights reserved.


www.rlb-tirol.at

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